LENDING UPDATE – 26.05.14‏

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 26.05.14

CURRENT LENDING NEWS

ALTERNATIVES FOR FIRST HOME BUYERS

With rising prices and the elimination of the $7,000 First Home Owners Grant for established homes in Victoria, there are several possible solutions available for first home buyers:

  • buy a property and lease it out, thereby taking advantage of rental income and tax benefits
  • buy a property with a sibling or partner, thereby joining forces with deposits and incomes
  • parental assistance with cash deposit or a Parental Guarantee loan where 80% of the loan is secured by the new property and 20% by the parents’ home. In this case no mortgage insurance is payable…a saving of $13,000 on the purchase of a $400,000 property

85% RESIDENTIAL LOANS WITH NO MORTGAGE INSURANCE

  • Lenders nearly always arrange Lenders Mortgage Insurance on any loan exceeding 80% of property valuation. The premium charged a normal 85% loan ($340,000 loan on a $400,000 purchase) is $4,000. A well- known lender offers loans to 85% without mortgage insurance if borrowers have:
  • genuine savings
  • steady employment history and strong incomes
  • clean credit histories

REFINANCE EXPENSIVE BUSINESS LOANS AT JUST 4.87%

Interest rates of 7-8% are often charged by lenders for commercial or business loans. These can be refinanced at just 4.87% if certain basic refinance conditions are satisfied:

  • existing loans have been well conducted and credit history is clean
  • application is in personal name and residential property in the same name is offered as security
  • loan does not exceed 80% of value and adequate income is proven

ATTRACTIVE COMMERCIAL LENDING OPTIONS AVAILABLE

  • normal commercial property loans up to 75% from 5.93% for factories, offices, warehouses
  • “lease doc” commercial loans up to 60% from 6.03% for these types of properties using lease as proof of income
  • vehicle/lease/equipment finance

POSITIVE CREDIT REPORTING HAS NOW COMMENCED

Once a loan application was lodged, lenders have previously reported only significant problems to credit reporting agencies, including defaults, court judgements and bankruptcies. From March 2014, lenders may now also report lesser repayment difficulties including late payments, arrears, and overdrawn accounts. Such reporting is optional.

LOANS TO NON-RESIDENT INVESTORS

Several lenders are prepared to lend to foreign non-resident individuals who are wishing to purchase in Australia:

  • newly built or “off the plan” residential investment properties only…established properties not permitted
  • loans up to 80% of property value, but some lenders will only lend to 70%
  • PAYG income earners preferred, but a few lenders will consider self employed
  • applicants must reside in certain nominated countries and documents must be translated and certified

ACCOMMODATION BONDS CAN NOW BE USED TO ACCESS HIGH CARE AGED FACILITIES

Until now, Accommodation Bonds (entry fees) were payable for placement of elderly citizens in low care facilities. From 1 July 2014, bonds can now be used to gain access to high care facilities as well. Several lenders will advance funds to pay the bond using the applicant’s home as security. Loans are available up to 45% of the value of the property which may be retained by the family instead of having to be sold.

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

What our customers say about us

Thanks for all your help and for making it so easy for me. Life will be so different now.

Jan Vincent
Montrose, VICTORIA

Thank you for your time on the phone yesterday and copying me into the below email.
I just wanted to take the time to say that I have never seen such a comprehensive email provided to clients by a Broker before. Very clear and detailed.
I hope it’s ok that I hold onto your details to refer to clients who may need assistance.
Kind Regards,

Shannon Oatley
Director & Licensed Conveyancer
Property Conveyancing Group, VICTORIA

We have found Barry Le Brocq of Melbourne Mortgage Finance to be very patient, caring and diligent in achieving a successful outcome to our refinancing requirement. We have no hesitation in recommending his services to others.

Don & Christine Perrett
Leongatha, VICTORIA

Many thanks Barry for the exceptional service that you have provided. We will most certainly be recommending you to our daughter (Bank of Melbourne branch manager) for any future customers who need a reverse mortgage loan.

Paul & Barb Spark
Somerville VICTORIA

 

LENDING UPDATE 14.06.19

  • LIVING EXPENSES ARE NOW A KEY ISSUE
  • COMPREHENSIVE CREDIT REPORTING NOW IN EFFECT
  • INVESTMENT LOANS AT OWNER-OCCUPIER INTEREST RATES
  • REVERSE MORTGAGE LOANS FOR SENIORS OVER 60
READ MORE

Melbourne Mortgage Finance offers an extensive range of mortgage products and services including

Home Loans, Investment Loans, Equity Access Loans, Low Doc Loans, 100% Loans, Refinance Loans, Commercial Loans, Deposit Bonds, Reverse Mortgages, Accommodation Bonds, Vehicle Finance, Plant and Equipment Finance, Financial Planning and Business Finance.

IMMEDIATE appointment can be made to meet at your home or office

  • NO CHARGE for assisting you. We receive a standard fee from the lender you select
  • reliable service, communication and follow-up. See “Testimonials
  • accreditation with 20 national lenders, allowing you to select from an excellent range of loans
  • we carefully listen to your needs, do our research, then present you with a short-list of three potential loan solutions. You choose the lender.
  • printouts of products, fees, interest rate and loan features are provided
  • arrange for your property insurance and personal insurance requirements to be assessed
  • ongoing availability to assist you after loan settlement
  • over 30 years experience in arranging finance and mortgage loans